Friday, April 1st, 2022
It makes sense to consider Hiring an Accountant for year-round provision, rather than just at tax time. There are numerous benefits of hiring a year-round accountant for your business, and the cost is a prudent investment to make in your company, brand, or business.
Some benefits of hiring a year-round accountant include:
Managing Money
One of the specialized accounting services that accountants offer is money management. When you are in business, how you manage money can make or break your success. An accountant is a shrewd and smart resource that can help you manage money well.
Business Planning
The first step in starting a business is typically a business plan. Consult with an accountant for their input at this very critical phase of your company. An accountant can help outline the financial parts of the plan- and make sure that your investment is a pragmatic one with potential returns. They will be able to explain and navigate the processes associated with business loans and financing, too.
Setting-Up
Just getting started? An accountant can make sense of a wide range of bookkeeping responsibilities that you may not even realize you have. You will need to set up an accounting system and appropriate accounting software to implement this. An accountant can make the transition for you.
Growth
You may find that you are in over your head trying to maintain books as your company grows and becomes larger. An accountant can set-up payroll, benefits, and reporting systems so that it runs smoothly as your business burgeons. They may also advise you as to the best strategies to keep your company fiscally healthy.
Retirement
An accountant is an excellent ally when you are planning retirement. They can help you prepare in the years, months, or weeks leading up to leaving your job, and help advise you on your retirement plan options. They may also be able to guide personal investments that can grow and mature into your retirement savings. If selling your business in order to retire, they can be an invaluable resource during that often-complex process, also.
Tax Time and Audits
Naturally, you want an accountant on your team at tax time. An incidental audit can tie you up for weeks and cause you undue hassle and headache. Accountants are familiar with the process and can stay abreast of the most recent tax info that might make a difference for you at year’s end. Let your accountant deal with the IRS and you can focus on your business.
Consider the benefits of having a year-round accountant and talk to the professionals at BMH Accounting to learn more. From specialized accounting services to a tax time audit, don’t go it alone. Rely on the expertise of a reputable accounting firm; call to learn more today.
Tags:
bookkeeping,
business plan growth management,
business planning,
business start up,
business tax preparation,
business taxes,
managing money,
retirement planning,
tax audit,
tax planning,
tax preparation
Monday, November 15th, 2021
What will happen to your company when you retire? Business Succession is something that many business owners don’t consider until it is too late, making selling the company the only viable option. If you want to preserve the legacy of your company or if you have other invested parties to consider, a business succession plan is not just smart but imperative. In essence, a sound business succession plan will include how you intend to oversee, sell, or transfer the company if you retire or in the event of your death.
Consider the following key factors to develop your sound business succession plan:
Why?
Don’t ignore it; retirement and death happen. Have a solid business succession plan in place to prevent prevailing issues and problems from rearing their head after you’re gone- which could cause the unfortunate demise of a company that you worked to protect. If you are an investor or partner in a company, make sure that you are well aware of the succession plan.
Who?
You will need to elect a successor for your company; in many instances, this involves passing the reigns to a family member or associate, but there could be many individuals that are vying for ownership of your business. Consider the pros, cons, strengths, and weaknesses of all candidates and prepare for opposition or hostility from those that were not chosen to replace you. Choose the best person for the job; you can’t please everyone all the time. Those invested in your company who do not care for the choice may opt to sell their stakes in the company to other partners or associates if they wish. This is not an uncommon repercussion at a time of succession or transition.
What?
It will behoove you and whoever takes over your role to determine the actual value of our business. Usually, this requires an appraisal from a CPA (certified public accountant) or from arbitration among all partners and owners. If your company is publicly traded, the value will be determined based on the current stock market value.
How?
After you know what your company is worth, partners and owners in the business should take out life insurance policies that benefit the others in the event of a death. The benefit is then used to buy out the investor who has died, and their share is distributed among the surviving owners or partners.
How this occurs is typically one of two ways:
An entity-purchase arrangement is fairly simple and provides for a single policy on each owner or partner of a business, and upon death, the business uses the benefit to purchase the deceased person’s share.
A cross-purchase arrangement is a bit more complicated. In these instances, each owner or partner buys an insurance policy on each of the other owners of the business. When one partner dies, the benefits of each surviving investor are pooled to purchase the share of the business previously owned by the deceased.
Got your business succession plan prepared? For the smoothest transition and equitable arrangement for your company, seek out the expertise of a qualified and competent financial advisor for support. Talk to the experts at BMH Accounting to ensure you are covered and your company is protected in a wide range of scenarios; call to learn more today.
Tags:
company legacy,
company value,
cpa,
cross-purchase arrangement,
entity-purchase arrangement,
oversee your company,
retirement planning,
sell your company,
Sound Business Succession Plan,
transfer your business